Harmony Protocol is rolling back its network to Aug 11 following a security breach on Aug 12. An attacker exploited vulnerabilities in cross-shard receipt validation and quorum verification code to mint 2.385 trillion tokens. According to the Harmony team, the rollback will revert the state of the blockchain to 23:25:37 UTC on Aug 11, before the initial breach.
Rollback Details
The network rollback will discard 141,628 consecutive blocks on Shard 0, containing 109,126 regular user transactions and 315 staking transactions.
Exploit Aftermath
The incident triggered an immediate crash in the price of ONE, which dropped by more than 30% as billions of forged tokens were quickly routed to cryptocurrency exchanges.
Recovery Efforts
Harmony developers have deployed an emergency patch, suspended cross-chain bridge services, and requested that cryptocurrency exchanges freeze wallet addresses linked to the exploit. Over 99.9% of the forged token flows have been traced with the assistance of an independent security firm.